Chandrima Mercan - Chandrima Mercan
Financial Performance
Revenue Growth by Segment
The company operates in a single segment, Agriculture Products, which generated a turnover of INR 29.19 Cr (Rs. 2,919.30 Lakhs) for the financial year 2024-25. Growth percentages were not explicitly disclosed, but the company reported no significant changes (defined as 25% or more) in key financial ratios compared to the previous year.
Geographic Revenue Split
Not disclosed in available documents, though operations are headquartered in Ahmedabad, Gujarat.
Operational Drivers
Raw Materials
Seeds and bio-fertilizers are identified as key inputs for the agriculture product segment.
Key Suppliers
Arihant Castor Export Limited is a significant supplier and related party.
Raw Material Costs
Related party purchases from Arihant Castor Export Limited totaled INR 2.65 Cr (Rs. 265.55 Lakhs) for FY 2024-25, representing approximately 9.1% of total revenue.
Strategic Growth
Expected Growth Rate
6.4%
Growth Strategy
The company aims to achieve growth by focusing on the agriculture sector, leveraging government thrust for infrastructure development and increasing farmer appreciation for value-added inputs like seeds and bio-fertilizers. Strategic planning is guided by a board with expertise in finance, operations, and business strategy.
Products & Services
Agriculture Products (including seeds and bio-fertilizers).
Strategic Alliances
The company maintains a significant commercial relationship with Arihant Castor Export Limited for the purchase of goods.
External Factors
Industry Trends
The industry is seeing a shift toward value-added inputs like bio-fertilizers. The broader Indian economy grew at 6.4% in FY25, providing a resilient backdrop despite global sluggishness.
Competitive Landscape
The company faces increased competition from both domestic players and developed countries in the agricultural product line.
Competitive Moat
The company faces a competitive threat due to low entry and exit barriers in the industry, which limits the sustainability of a traditional moat and increases the risk from substitutes.
Macro Economic Sensitivity
The company is sensitive to Indian GDP growth (6.4% in FY25) and domestic demand-supply conditions in the agriculture sector.
Consumer Behavior
There is an increasing appreciation among the farming community for the value of quality inputs like seeds and bio-fertilizers.
Geopolitical Risks
Operations are subject to global demand-supply conditions and international economic developments.
Regulatory & Governance
Industry Regulations
Operations are governed by agricultural sector regulations, government policies, and the Companies Act, 2013.
Taxation Policy Impact
The company is subject to changes in Government tax regimes and amendments in tax laws, which are noted as factors that could materially impact results.
Risk Analysis
Key Uncertainties
The primary uncertainty is the vagaries of temperature and rainfall, which can drastically impact the performance of crops and the company's single-segment revenue.
Geographic Concentration Risk
Operations are concentrated in Ahmedabad, Gujarat, where the registered office is located.
Third Party Dependencies
Significant dependency on Arihant Castor Export Limited for product procurement (INR 2.65 Cr).